Question

As a novice investor, Laura is concerned about fees. She has heard stories of investors who have lost thousands of dollars in fees over time. She wants to invest in investments that generally have the lowest fees. Given her desire, Laura should focus on purchasing:

Answer 1

Answer:

Laura should focus on purchasing Index Mutual Funds and Exchanged-Traded Funds.

Explanation:

Laura should, amongst many investments’ options, focus on two particular types of investments: the first one is called index mutual funds, which have a much lower fee than mutual funds, giving the investor an investment with lower cost while having a fund that works in many ways equal to mutual funds. The second one should be exchange-traded funds, particularly because those funds are based on commissions, making it possible to charge lower fees than mutual funds.